A few months ago, about 125 leaders from religious institutions, civic organizations, and social service groups met at Etz Chaim synagogue in the town of Lombard, in DuPage County, to wrestle with a new reality: a budget crisis. Budget crises aren not supposed to happen in places like west suburban DuPage. It is home to nearly one million souls and more than 600,000 private sector jobs. It boasts a median income of $70,000, one of the highest in the nation. And yet the county, strapped for cash, was threatening to cut convalescent services, veterans’ services, housing assistance, breast cancer screening, and many other essential public functions.
Until recently DuPage County had been one of the big winners during the forty-year decline and imminent collapse of Cook County. Major corporations fled Chicago’s failing downtown and moved to DuPage’s open spaces and tax-friendly towns. Working class homeowners on the west and southwest sides of the city sold their bungalows and bought ranch houses, Cape Cods, and new town homes in Wheaton and Naperville and Downers Grove. Families troubled by the city’s public schools happily sent their children into shining new facilities and well-equipped classrooms. County government prided itself on its lean budgets and effective service-delivery.
By the date of the meeting, however, the developers who had helped double DuPage’s population in just 30 years had run out of land. The income generated by their construction efforts had dwindled to a trickle. Education and public safety costs continued to climb. Scores of specialized local districts and commissions—water, sanitary, and others —absorbed hundreds of millions of dollars that never made it into the general operating budget of the county and were subject to little, if any, scrutiny or oversight. And residential real estate taxes—the backbone of the county’s budget due to the long-standing agreement to attract and retain business by keeping commercial taxes low—soared.
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Michael Gecan is on the national staff of the Industrial Areas Foundation and is the author of Going Public. His essays have appeared in several national publications.
Michael Gecan Taking Faith Seriously

If we only could see the future impacts of Divisive-Americanism on american citizens; perhaps my students will read this and reap a better future.
When Abraham Lincoln delivered his "vision," blacks in the South were slaves, and Lincoln admitted, over and over again, that he would accept that. FDR failed to end the Depression, and spent his entire second term flailing at invisible, and non-existent, enemies. What paleo-liberals like Mr. Gecan cannot stand, and will not understand, is that life is actually much better than it was in the glory days of American liberalism. Liberalism needs a new vision, and Mr. Gecan obviously has no ideas on that subject.
give back some of their tax free money to the community when things are desperate.If we are relying on religious help for this situation we will be in deep trouble someday.
By keeping the same system of housing and business renewal we are operating with an infinite attitude in a finite world.We have to evolve to a no growth system before the
Earth is destroyed.
Are you joking? while it is true NY City municipal unions briefly bought short term City bonds when nobody else would, it was those same unions who conspired with the local Democratic machine politicians to trade votes for bloated payrolls. The unions and the pathetic political "leadership" in NY City were one of the primary causes of NY City's financial problems in the first place.
Crediting the Municipal Unions with "Saving" the City is like thanking the mugger who steals your car and wallet but let's you keep your Metrocard for the subway ride home.
Regional Equity. This is a major focus of the Gamaliel Foundation, and David Rusk.
Pete da Silva
pete076@hotmail.com
Thank you James Q. Wilson. Thank you Wall Street. Thank you information revolution. Thank you welfare reform. Thank you community policing. Thank you more sane taxes.
More people are forsaking the suburbs because the cities are now a viable option. Thank heavens for that. But I think I'll projectile vomit if I have to read a victory lap from the left about it when these are the same activist types who used to see artistic merit in graffiti, lament the "suburbanization" of Times Square, bemoan tax incentives for corporations, considered police enforcement with regard to petty street crimes to be fascist, consider black incarceration rates to be racist in spite of the very obvious reality of who commits crime in NY, fought welfare reform to the death, obstructed any efforts to give the heave ho to incompetent teachers, argued that panhandling is freedom of speech, fed the lie that most homeless were families down on their luck rather than substance abusers and the mentally ill, and any number of other lunacies that assured that New York had the vibe of a third world country.
It is also very disappointing to see profound improvements in Chicago turned on their heads to be radical falsehoods. "This extraordinary trope made it possible for a major American city to demolish much of its public housing stock—nearly 18,000 units—and essentially not replace it. Ten years ago, these 18,000 families were promised replacement apartments. To date, fewer than 2,000 have been built, most not affordable to the original renters." Is someone arguing that the Robert Taylor Homes and Stateway Gardens and Cabrini Green should have been kept? Or that construction on 10 different sites isn't still continuing? Please...
And lastly, the engine behind NYC's change is cash -- their great industry is one no other city has -- Wall Street.
Having lived here in Queens NY my whole life, I have to take issue with some of the conclusions specific to NYC and Long Island and would like to offer my observations. To wit:
-- Except for those in rent controlled and stabilized apartments, there is no real middle class in much of Manhattan below the 90s. The real middle class resides in the outer boroughs.
-- No mention was made renewal of older housing by industrious immigrants from eastern Europe, Asia and South America that has displaced the indigineous minorities such as blacks and Puerto Ricans.
-- Over the last 10 years many NYC minorities have migrated to Pennsylvania, Upstate NY, Long Island, and the Southern States because of the phaseout of unlimited welfare benefits and economic competition from more industrious immigrants. This has lessened the economic drain on the working middle class.
-- The person who provided the impetus for turnaround of NYC was Rudy Guliani. David Dinkins and Mario Coumo were part of the problem, not the solution.
-- Prior to Guiliani, 1 out of every 5 NYC residents was on some form of welfare, crime was rampant, NYC was in economic decline, very few movies were being filmed in the City, car theives were given desk appearance tickets instead of being arrested, bums were harrassing female motorists, etc. He single-handedly solved these problems.
-- NYC suburb, Long Island (Nassau and Sulfolk Counties,) has suffered net loss of population because of unchecked growth of Government, political patronage, limited public transportation, and excessive property taxes, which pushed the cost of living through the the roof.
-- Thanks to Guiliani and Blumberg the subways and public transportation are the preferred form of travelling for most people. The NYC parks are clean and well managed. And NYC is now as it was -- a great place to live.
God bless NYC!
Cdn perspective: demographics.
Gecan "This extraordinary trope"- what evidence do you have that it is wrong? Other than, obviously, that anyone who suggests it is an evil racist.... You present none, and in fact much evidence is consistent with it, including the fact that urban decline -along with unassimilated minorities- is moving to the suburbs.
Detroit, the city I live near has not taken crime seriously. All one need do is tour Detroit to see the devastation and abandonment much of it from the droves that left to safer environs (suburbs).
Economic investment's greatest ally is the reduction in crime
As for Guiliani, How anybody still endorses him with a straight face is beyond me. Over two hundred cities across America saw decreases in street crime. Rudy was in one. Rebuilding downtowns was doing just fine, thank you very much, in cities from Sacramento to Burlington to San Antonio when "the Shark" was just one more headline-grabbing prosecutor. Want to know about his role in NY? Ask a firefighter.
"Increased housing stock"? Don't make me laugh. In the last two years before I walked out on my increasingly decrepit apartment the rent went up almost twenty percent, as did the rent on all the other thousands of units under the same legislation. By the time I left, much of the three block long area my building was in had been reduced to rubble for condos. All across New York rent stabilized and controlled housing has been deregulated, condoized, or simply condemned and torn down. Having a real estate executive as governor hasn't helped. Many thousands of middle class families and seniors have been forced out.
I lived on the edge of Washington Heights for thirty years and I saw a hell of a lot of hard work by people like Symphony Space that Mr. Gecan's chuches and unions dismissed with loathing and contempt. Hard work that brought back streets his people still ignore. All while the working class and middle class food and clothing stores all got priced out and replaced with high-priced boutiques. Did the groups he mentioned build housing? Well, yeah, but largely because of squatter-friendly laws the Koch administration passed that gave anybody who did enough documented sweat equity on such abandoned properties ownership of their building. Laws that more recent mayors have reversed.
Buildings were being rehabbed, as were community resources like ABC No Rio, Charas, and Dos Blacos, in record numbers with no help from and frequently with opposition of Mr. Gecan's friends. And these "radical" rehabbers were frequently doing all they could to put in greenroof and solar and gardens and all the other kinds of amenities and improvements that Mr. Gecan's friends are only now discovering to be important. Twenty to thirty years later. Umbrella House may not be his cup of tea but their way is sustainable, practical, scalable, community-oriented, and cheap.
I've seen the shoddy, mock suburban or cement block under brick veneer crap Mr. Gecan's friends have put in, inside and out. I've seen the adventurous, sometimes beautiful, reliably loved projects by the individuals and groups Mr. Gecan ignores. I know which I, and, I suspect, history, favor.
After the community became about 15% black, the quality of life went down. The houses were not maintained, the kids started complaining about harassment at school, and crime rates did go up. We never had any sort of violence in the area before this but, after some time, we experienced a shooting.
These were the blacks that were supposed to be "just like us." They had escaped the ghetto to live in a better place and at first, I totally respected that.
But through that experience, I learned that I will never live near large numbers of blacks ever again. I even picked up another job in order to live where I do. If I have to work four jobs to live away from them I'll do whatever it takes.
I spent 28 years of my life being "tolerant." After 3 years in a "diverse" area, the "tolerance" was slapped out of me.
On a side note: After my experience in the soon to be ghetto, I did a lot of research on segregation. My research has led me to the conclusion that the people who advocated integration were connected to the suburban developers. I'm doing research on this subject and plan on writing a book. No one scored better than the developers from the end of segregation. They knew the end of segregation would lead to big time movement. Just something to think about....
While I disagree about whether Chicago gets the Olympics (Brazil is the only real competition) and I think the long-winded ex-Manhattanite has some points about how New York got rehabbed, I think Gecan did an excellent job of both avoiding the analysis-deprived ideological positions both left and right and of charting how governments get into debt: by depending on growth.
The pattern in DuPage is clear - reliance on residential taxes works for about 40 years because the continued growth shields existing businesses and residents from the real costs of shared services. Once land runs out, the Bronx starts burning. The Atlantic article suggested that the next step for many of the areas is to get denser - just as urban areas did by chopping homes into 2-flats or 3-flats or more. I live in a mature suburb with rapid transit (34% black by the way, and richer and nicer than it was when it was 12% black) where building densities have increased in the last 15 years although population is still lower than the 1970s but that is a function of how much space we now use per individual and smaller families. Like Chicago and New York, our town filled its borders, unable to expand after about 1960. This led to decline, but then our town, like Chicago and New York, figured out a new pattern of growth that would allow it to thrive.
Turning a farm field into a subdivision or home center is the jellyfish of economic development - as primitive and dumb as you can get. DuPage County is now faced with evolving, as places like New York did before, and become a creature that performs economically without dumb development. This evolution is not an even process and local and county governments are often the last to acquire a backbone. My lovely diverse town has real estate taxes that consume a fifth of my income, (that number roughly corresponds to what I would spend on private schools in the city), and the county is nearly broke. But like Manhattan, I don't need a car where I live and the real wild card in this discussion is automobile subsidies. All of these places, especially DuPage, were built in a 40-year window of low gas prices and massive federal automotive subsidies (especially roads) that won't return. DuPage is already angling for tons of new public transit, which they will need if they alter the business-subsidy tax structure, and given how things are going, they will.
Ouch. And sorry. I'm afraid that brevity is rarely one of my strong points.
Mr. Gecan neglects to mention that Chicago has experienced an unprecedented citywide building boom that has touched even previously blighted areas. This boom is the result of private initiative and not anything that the politicians and planners have done other than to stand aside.
The real problem here and a drag on the local economy is the greedy, gluttonous and unaccountable public sector that collects its funding at gun point through every imaginable tax, fee and fine and then, predictably, fails to deliver the promised goods. So if there truly is a move toward privatization, then such a phenomenon should be celebrated. The people with guns have failed miserably at all their stated civic goals except for the most important unstated one which is to enrich themselves and their friends at the expense of everyone else. But then why shouldn't they? The city run public school monopoly has conveniently neglected to teach its charges that historically that is what people with guns, AKA the government, always do.
It's time for the failed, corrupt public sector to be cast onto the trash heap of history. The use of force is clearly the wrong social organizing tool. Freedom of choice, freedom of association, voluntarism and spontaneous social interactions are the way to go. That is what once built America. It's time for the working people of Chicago and other cities to keep their money and control their destiny without the interference of self serving politicians, bureaucrats and planners pining for some fantasy public life.
The federal income tax topped out at around 80% during the Eisenhower era. Taxes (and public revenues) are lower now than ever, which is why public education and mass transit is crumbling.
Regardless of one's political opinion, the fact is that it takes smarts and consistent action, including money, over a sustained period of time to bring a city back to economic health. It doesn't happen by itself. Capitalism sucks the marrow from that which it feeds upon, and it does not reward the commons. It rewards private individuals and institutions, and if they are not forced to contribute back (they used to do it willingly, but even that was haphazard) to the commons, then we all suffer in the end. Pretty simple to me.